How Payment Innovations Become Frictionless with Platform Technology

Currently, the landscape of payments is undergoing a remarkable transition. Increasingly, customers are demanding payment experiences that are not only quicker but also more convenient and safer. In order to keep up with the competition, payment processors need to be flexible and creative. These are the situations in which platform technology comes into play, serving as a launchpad for innovation that is frictionless.  

To enable frictionless innovation, payment processors can leverage platform technology in a number of different ways, including the following: 

– Rapid integration of new technologies: As innovation accelerators, platforms are quite useful. Tokenization, real-time payments, and open banking are examples of developing technologies that they offer pre-built interfaces and functionality for. Because of this, processors are able to rapidly incorporate these advances into their products and services without having to begin from scratch. Consider the possibility of a platform that already contains modules for a variety of security protocols. Processors can easily select the modules that are pertinent to their systems and incorporate them into their operations, which considerably reduces the amount of time required for the development of new security features 

– Reduced time and money spent on development: Features such as user authentication, fraud detection modules, and shopping cart connections are examples of the pre-built features that platforms allow for. This significantly cuts down on the amount of time and resources that are required for processors to build new payment solutions. Instead of creating everything from the ground up, processors can take advantage of the functionality offered by platforms and direct their resources toward innovation. It is because of this that they are able to experiment with new features and respond more quickly to changes in the market 

– Openness and working together: By supplying APIs and developer tools, platforms help to cultivate an open ecosystem. Processing companies are able to work together with fintech startups and other stakeholders as a result of this. A platform that allows developers from multiple firms to access shared resources and features is something that you should imagine. This collaboration has the potential to result in the co-creation of novel payment solutions that serve to satisfy certain market requirements. An example of this would be a processor working along with a startup that specializes in artificial intelligence-powered fraud detection to design a fraud prevention solution that is the best in its class

– Scalability as well as flexibility: Through their inherent scalability, platforms make it possible for processors to quickly accommodate increases in both the volume of transactions and the number of users. In addition, platforms have the flexibility to tailor solutions to the specific needs of various market groups and geographical areas. Processors are able to take advantage of the main functionality of the platform while simultaneously developing bespoke features on top of it to meet the requirements of individual customers. Because of this, they are able to provide individualized solutions to merchants in a variety of markets without having to make large adjustments to their infrastructure

– Data-driven product development: Insights derived from data can be leveraged to create innovative payment products that can allow payment processors to differentiate themselves from competitors. The power of data can also be used to gain a deeper understanding of the market trends and customer segments, that allows the facilitation of strategic collaborations with industry stakeholders   
 
The role of platform technology in payments innovation can be further understood through the following examples: 

– Embedded payments: Platforms have the ability to significantly simplify the process of integrating payment functionalities into a wide variety of applications and websites. Within the user’s existing workflow, this makes it possible to have a payment experience that is completely frictionless. Imagine an app for food delivery that allows users to make payments without having to visit to a separate payment page. This would be a seamless occurrence within the app itself 

– Personalized payments: In order to give consumers with individualized payment alternatives, platforms might make use of data analytics derived from a variety of sources. This has the potential to increase conversion rates as well as customer satisfaction. An example of this would be a platform that examines a user’s purchasing history and makes recommendations regarding preferred payment methods or loyalty programs throughout the checkout process 

– Real-time fraud detection: Platforms have the ability to permit real-time communication between various stakeholders in the ecosystem, which enables fraud detection and prevention to occur more quickly and effectively. Just for a moment, picture a system that enables financial institutions and merchants to exchange real-time fraud data with processors. This collaborative approach has the potential to assist in the identification and prevention of fraudulent transactions in a more efficient manner 
 
Platform technology is enabling frictionless innovation, which is causing a revolution in the payments environment currently in progress. Payment processors that are willing to accept platform-based solutions will be in a strong position to prosper in the payments ecosystem, which is both dynamic and competitive. 

Which brings us to FSS BLAZE™ – a state-of-the-art, new-age payments technology platform. FSS BLAZE™ has a multi-layered architecture that decouples core services for modular development, easy upgrades and integrations. 

Find out more about FSS BLAZE™ here. 

To understand the role of technology platforms like BLAZE™ in the payments industry, download our whitepaper – Reimagining Payments – The Platform Way.